Determination - Air Carrier Insurance

The 6th Circuit has issued an opinion that discusses an FAA decision regarding the liability insurance requirements an airport may require of an air carrier, including discussion regarding the downgrading of an airfield to a Class IV Airport Operating Certificate. The FAA had determined that an airport requirement of $20 million is reasonable for scheduled air carrier operations with 20 seat aircraft but is not reasonable for aircraft with 9 seats.

Flamingo Express, Inc. v. FAA (6th Circuit; 08/08/08; No. 07-4226). In a complaint filed with the FAA by the operator of an air service alleging that a city had violated its obligations under federal law by, among other things, failing to approve an application and requiring that petitioner obtain unreasonably high liability insurance coverage, dismissal of the complaint is affirmed where the city did not violate its federal obligations.

The read the referenced Director’s Determination, please click here.

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